Answer:
The answer is process further if incremental revenue from such processing exceeds the incremental processing costs.
Explanation: Revenue is equal to the total number of products or services sold multiplied by the unit price of one product or service.
Profit is made when the total revenue exceeds the total costs incurred during a particular production process.
The decision rule on whether to sell or process further will therefore depend on whether the marginal revenue gotten will exceed the additional costs that will be incurred in bringing a product or service to the market.
Now, if the incremental revenue gotten will be higher than the incremental processing costs, then it is advised to process further, but if the incremental revenue will be lower than the incremental processing costs, then it is advised to sell.
Answer:
compares project cost to the present value of the project benefits
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
A good investment is an investment that has a positive NPV. When comparing two or more projects, the project with the higher NPV should be chosen.
Answer:
A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: Is callable by the creditor - Will be refinanced with stock.
Option A is the correct answer.
Explanation:
Generally, a short term liability is required to be paid by the company within a period of 1 year. Nevertheless, if the liability is callable the creditor, the company is not required to pay the liability within a year.
Thus, in this instance, a current liability can be detailed as a long term debt in the balance sheet.
Answer:
1. more
2. less
3. borrowing
4. past savings
Explanation:
It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to spend <u>more</u> than they earn, while older adults tend to spend <u>less</u>. To accommodate their spending habits, young adults tend to rely on funds raised from <u>borrowing
</u>. Retired adults, in contrast, tend to rely on <u>past savings</u> to cover the frequent shortage between their current expenditures and their current incomes.
I think it’s a because it’s talking about consumer electronics
